Leasing...What is it?
An equipment lease is a contract that allows you to rent equipment for a fixed period of time. Ownership of the equipment is retained by the leasing company unless you exercise a purchase option at the end of your lease.

What can be leased?
Any business essential equipment can be leased, from photocopiers to trucks, priced from a few thousand dollars to millions. New or used equipment can be leased. Even equipment that you already own can be refinanced into a lease to free up working capital.

Why should I lease?

1. Minimal Up-front Costs:
   Leasing covers 100% of the equipment cost, and can even cover extra costs like shipping and installation. Conventional financing usually requires a hefty down payment. Most leases require only one or two payments in advance.

2. Potential Tax Advantages:
   When you buy equipment with cash or conventional financing, you use after-tax dollars. Lease payments are pre-tax and fully deductible as operating expenses, but this depends on several qualifying factors. Check with your CPA to see if our leasing programs can lower your tax bill.

3. Keep Your Credit Lines Open:
   As your company grows, you may need additional operating capital to finance the increase of your accounts receivable, inventory, labor force, etc. Bank credit lines are designed for this purpose, and they are hard to get, so don't use them up for equipment purchases. Many growing businesses make this crippling mistake. Then they are unable to fulfill new contracts, or they are unable to weather a slow season.

4. Keep Your Assets Unencumbered:
   Most bank loans include restrictive covenants and blanket liens. These can restrict your business, and will encumber all of your assets (equipment, accounts receivable, etc.). Most leases do not include these covenants, and they do not encumber your other assets.

5. "Off Balance Sheet" Financing:
   Your company's strength and credit worthiness is often judged by the debt shown on your financial statements. If you have too many outstanding loans, you will be viewed as poor credit risk. Conventional financing increases the debt shown on your company balance sheet, but leasing does not.

6. Fixed Payments:
   Do you remember when interest rates went from 9% to 21.5% in a single year? It could happen again. Unlike bank lines of credit, with variable rates, lease payments are fixed - no matter what happens to the market tomorrow.

7. Tightening Credit at Local Banks:
   The media refers to it as the "Credit Crunch". Rates are low, but local banks have tightened up on their lending - even with their best customers. Many business owners are tired of hassling with their banks when they need equipment, and they are finding better service from leasing companies.